What is life cover? Well, the answer can be straightforward, it is an insurance contract on your life.

Monthly premiums are paid to an insurance company, and in the event of your death the insurance company will typically pay a lump sum to your beneficiaries. If you stop making payments, the life insurance will cease and no pay out will be made in the event of a claim.

The importance of life cover shouldn’t be understated; if the breadwinner of a family passes away before their time, then how would their loved ones cope, both emotionally and financially?

The loss of a family member is damaging in many ways, however, it doesn’t have to damage your financial circumstances. It is not expensive and can cost as little as £10 per month.

In these tumultuous times of high inflation, it is understandable that expenses need to be closely monitored and life insurance premiums may not seem important.

In a world where we have multiple subscriptions, such as Netflix, Spotify, Amazon Prime, Disney + and Sky, careful consideration should be taken to prioritise what is important, and whether life insurance premiums should take precedence over such subscriptions.

If your life cover premiums are becoming too expensive, then it is possible to review the policy to see whether there are more cost effective alternatives. In most cases, policies can be cancelled at no cost to the policy holder and a new policy may be taken out.

Importantly, life insurance policies need to be tailored to your specific needs; for example what is the pay out intended to be used for? Is the cover enough? How long do you need the cover for?

Life cover should be the base consideration, the starting point. When reviewing your insurance needs, it is worthwhile thinking about additional scenarios, for example, what happens if you cannot work due to an accident or illness? Or what would happen if you were diagnosed with a serious illness?

At CBW Financial Planning we like to have a complete picture of your world and understand what is important to you. We take great care and time to get this right, insurance can play a big part in ensuring financial security for yourself and your family.

We all insure our cars, houses and pets, but often we forget our most valuable asset, ourselves.

What next?

As always, the CBW Financial Planning Team are on hand to discuss any thoughts or concerns that you may have, so please do not hesitate to contact us. In the first instance, please contact Jason Toumba.